STANDARD SUMMARY PROJECT FICHE Rehabilitation and Partial Reconstruction of Road II-19 Razlog Bansko Gotse Delchev Sadovo 1. Basic Information CRIS Number: 2002/000-624-01 Title: Rehabilitation and Partial Reconstruction of Road II-19 Razlog Bansko Gotse Delchev Sadovo Sector: Location: Infrastructure - Transport (IN) Bulgaria, South region 2. Objectives 2.1. Overall Objectives To reduce isolation of border regions and encourage investments and crossborder trade. Through this improved communication link, development of both regional and national economic co-operation. Improvement of the infrastructure in the CBC regions of Bulgaria, as a part of the strategy for sustainable social and economic development. 2.2. Project purpose Improvement of the existing II-19 road section between Razlog (Bansko) and Gotse Delchev Facilitate the increased traffic flow between Bulgaria and Greece through the new BCCP Ilinden. Development of the natural potential for tourism of this attractive area and thus provide the conditions for economic and social exchange between the CBC regions. Time and operating cost savings, as well as improved traffic safety and comfort. Promotion of local and national economic development. 2.3. Accession Partnership and NPAA priority Development and implementation of complex regional structures, programmes and projects for the integrated development of problem areas in the country underdeveloped, isolated, depressive and cross-border areas; Preparation of Bulgarian regions for the implementation of the structural policies applied by the EU Member States through the development of strategies and programmes for sustainable social and economic development. NPAA (Medium-term priority): Promotion of cross-border co-operation. 1/13
2.4. Contribution to National Development Plan CBC regions, a part of which is the area of the project, are treated in the National Development Plan (NDP) as a high priority target. The proposed project fully complies with the objectives defined in the NDP, which classifies CBC regions in a separate target group. Some of the expected results of program CBC with Greece and subprogram Roads (program Transport System ) are as follows: Foundation of a new CBC zone in the area of influence of the new BCPP Ilinden Improvement of the economical and social conditions Improvement of international and local transport connections Optimization of road infrastructure and improved accessibility Improvement of traffic safety and comfort Improved access of goods from and to both national and international markets Improved access to areas of tourist value Improvement of approach roads to BCCPs The proposed project will contribute to the achievement of these results. 2.5. Cross Border Impact Support road infrastructure works in order to foster cross border co-operation at a local and national level. Facilitate an increase in the trade and cultural links between the two countries. Encourage economic development on both sides of the border in the region. 3. Description 3.1 Background and justification Background Road II-19 is the main road link for the South West Region of Bulgaria, being the only high-class road serving the traffic from and to Central Bulgaria using road E-79 and providing a link with Gotse Delchev via Bansko. The positive and beneficial effects of the construction of the new road Gotse Delchev Drama (Phare funded project with a total budget of 10.85 MEUR) and the new BCCP Ilinden (Phare funded project with a total budget of nearly 5 MEUR) will be mitigated by the current poor condition of the road section between Razlog (Bansko) and Gotse Delchev. The insufficient exploitation characteristics of the road due to extensive potholes, rutting, and inadequately maintained structures are affecting not only the comfort but also the safety of the passengers. If the necessary funding for rehabilitation of the road II-19 is provided in the year 2002 under the Phare CBC Bulgaria Greece 2002 programme, the project will be completed just in time to serve the expected considerable increase in the traffic flow after the opening of BCCP Ilinden. Taking benefit of road II-9 and its continuation in North East direction road II-84 Razlog Lakoruda Lundola Velingrad Pazardjik a connection between BCCP Ilinden and 2/13
the Central part of Bulgaria will be established. This will encourage development not only in the area of the project, but in the region of Lundola and Velingrad, which is highly attractive for leisure activities. The South West region of Bulgaria has a very high potential for tourism and realization of the proposed infrastructure project will increase significantly the possibilities for development of the local economy. The area is well known for its mineral wells with proven medical effect. It is equally attractive for both winter and summer leisure activities because of the easy access to the Pirin Mountain. The possibility of attracting more visitors is substantial for the region. The proposed project consists of rehabilitation and partial reconstruction of 58 km of the existing II class road (II-19). Justification Bulgaria is currently in the process of conversion to a market led economic system. As an integral part of this process, the country is actively pursuing a policy of greater accessibility to trade and economic links with its neighbouring countries Greece, Romania, FYROM and Turkey. Its key geographical position supposes heavy flow of international traffic to cross the Bulgarian borders. Therefore, from the improvement of existing approach roads to the cross border checkpoints and the construction of new roads will benefit not only the national but also the international traffic. The proposed project is in compliance with the priorities established in the Joint Programming Document (JPD), agreed during the Joint Cooperation Committee (JCC) between Greece and Bulgaria (Athens, 20 Nov. 2000) and JPC (Athens, 23 July 2002) and especially with the AXIS 1 CROSS BORDER INFRASTRUCTURES, Measure 1.1 Transport Infrastructures. Under the priority 1 Improvement of local trans-national infrastructure, one of the proposed measures is the rehabilitation of the communication infrastructures in the CBC region, including the rehabilitation of the roads network. This project complies also with the provision of Council Regulation 1266/1999 on Coordination of pre-accession assistance. 3.2 Linked activities BG9803.01.01 Rehabilitation of E-79 road Dupnitza Kulata : Completed. BG9803 01.02 Rehabilitation of E-85 road Harmanli Svilengrad : Under Implementation. BG9803 01.03 Reopening of access road to the new border crossing at Illinden (link Goce-Delcev - Drama): Completed. BG9904.02.01 Construction of cross border Check-point Ilinden : Completed. BG0008.01 Construction of the Access Road (Podkova - Makaza) to the new Border Crossing between Greece and Bulgaria (Makaza - Nimfea): Signing of Contract is forthcoming. BG0008.02 Construction of Cut & Cover Tunnel at Gotse Deltsev Drama Border Crossing: Under Tender procedure. 3/13
3.3 Results Strengthening the co-operation between the two border regions at local level. The main municipalities from the Bulgarian side concerned with the need for upgrading of the existing road are: Razlog, Bansko and Gotse Delchev. The travel distance between the villages in the region and Greece (Drama for example) will be considerably shortened as an alternative to the existing crossing point Kulata/Promachonas. Part of the traffic from Central Bulgaria to Greece will also take advantage of the improved road link. Preparation of Bulgarian border regions for the implementation of the structural policies applied by the EU Member States through the development of strategies and programmes for sustainable social and economic development. Provision of employment during the construction period. 3.4 Activities The proposed project consists in rehabilitation and partial reconstruction of approximately 58 km of road II-19 between Razlog (Bansko) and Gotse Delchev The rehabilitated section will comply with the EU standards, and in particular as regards the maximum authorised weight of 11.5 T per axle. To that end, the following activities will be undertaken: Detailed Design updating REA will undertake updating of the existing Detailed Design before starting of works tendering procedure. No additional funding required. Construction Supervision Services REA will undertake the preparation of the Tender Dossier for the Service Contract and tendering procedure. No additional funding is required. This contract shall be awarded according to the Practical Guide to Phare, Ispa and Sapard contract procedures through restricted tender procedure. Estimated budget: 0.9 M Euro. Construction Works REA will undertake the preparation of the Tender Dossier for the Works Contract and tendering procedure. No additional funding is required. The contract shall be awarded under FIDIC 1999 conditions for construction through an open tender. Estimated budget: 11,5 M Euro. The PHARE contribution will finance up to 9.3 MEUR, the rest of the financing up to 12.4 MEUR will be financed by the Bulgarian State Budget. 4/13
3.5 Lessons learned Cost and time overruns were highlighted in recent M&A reports. Expenditure will be controlled more closely, by ensuring that variation orders are issued in good time and that the Engineer does not certify payments exceeding the Contract amounts without prior approval. The staff within the department has been increased and training of the staff has been carried out. Further delays were caused by slow land acquisition. There is no extra land needed for this project. 4 Institutional Framework Recipient country Republic of Bulgaria Beneficiary Institution Road Executive Agency (REA). Engineer the Engineer will be appointed after restricted International Tender Procedure for the supervision contract according to Practical Guide to Phare, Ispa & Sapard contract procedures. Contracting Authority PHARE CBC IA in the Ministry of Regional Development and Public Works (PHARE CBC IA, hereafter). Owner of the asset after project completion - REA The Regional Department of REA will bear the responsibility to cover all operational, administrative and maintenance costs. The project is in full relevance with government regional policy to promote and support the population in the border regions and with relevant Legal Framework. It is also in compliance with all existing relevant bilateral agreements between Bulgaria and Greece, concerning Border links and relationships. 5 Detailed Budget (in MEUR) Component Construction Supervision Services Construction works PHARE Support Investment Support Institution Building Total Phare (=I+IB) National Cofinancing IFI TOTAL 0 0.9 0.9 0 0 0.9 8.4 0 8.4 3.1 0 11.5 TOTAL 8.4 0.9 9.3 3.1 0 12.4 5/13
6 Implementation Arrangements 6.1 Implementing Agency The CBC Implementing Agency is the Ministry of Regional Development and Public Works (MRDPW), which retain overall responsibility for the implementation of the project (approval of terms of reference, of tender documents, of evaluation criteria, of evaluation of offers, signature of contracts, authorisation and payments of invoices). The project beneficiary institution is Roads Executive Agency (REA). It is responsible towards the CBC Implementing Agency for the operational management of the project: preparation of terms of reference, of tender documents, of evaluation criteria, of evaluation of offers, of contracts and of invoices for payment. For Work Contracts under FIDIC rules, an official of REA acts, as the Employer and the invoices have to be certified by an independent Engineer contracted and financed by the Phare Programme. REA reports monthly to the CBC Implementing Agency (with direct copies to the EC Delegation) with monthly disbursement and commitment schedules and with sufficient detail to allow for assessment of progress made and remaining work to be done. Ministry of Regional Development and Public Works Deputy Minister Mr Hasan Hasan 17-19 Kiril and Metodi St. 1202 Sofia Phone: +359 2 988 1849 +359 2 940 5576 Fax: +359 2 988 4364 6.2. Twinning: N/A 6.3. Non-standard aspects There are no non-standards aspects. The Practical Guide to Phare, Ispa and Sapard contract procedures will strictly be followed. 6.4. Contracts Two contracts are anticipated: Service Contract for Construction Supervision. Estimated value of contract: 0.9 MEUR. The duration of the Supervision Contract is expected to be 36 months: 1 month - mobilisation, 18 supervision during construction, 12 months Defect Notification Period, 5 months Final Payment Works Contract for Construction Works. Estimated value of contract: 11.50 MEUR. The duration of the Works Contract is expected to be 35 months: 18 construction, 12 months Defect Notification Period, 5 months Final Payment 6/13
7. Implementation Schedule Start of tendering Start of project activity Completion April 2003 January 2004 November 2006 8. Equal Opportunity The project implementation procedures will ensure that the project brings benefits to men and women and to ethnic groups in equal measure. Special attention will be paid to guarantee that women and members of ethnic groups are included in the project activities. 9. Environment Pursuant to Article 20, Paragraph 1, item 3 of the Law for Preservation of the Environment, rehabilitation and reconstruction of an existing road, (where the road class remains unchanged) is not subject to a mandatory Environmental Impact Assessment Report (EIA). 10. Rates of return The socio-economic analyses shows project benefit from the sections to be rehabilitated - about 18% IRR. This socio-economic analyses is based on the typical Methodology for determination of the feasibility of repair works design for Bulgarian roads from 1993 of the Central Laboratory of Roads and Bridges. 11. Investment criteria 11.1 Catalytic Effect Without PHARE assistance the project will not be implemented in the near future, because of the lack of funds. Thus EU Phare funds are appearing as the economic assistance to the country and will mobilise economy during Pre-Accession period achieving better socio-economic effect. 11.2 Co-financing The project is to be co-financed by Bulgarian Government who will provide 25% of the total cost of the project, which is 3,1 MEUR. 11.3 Additionally No other financing sources from the private sector or from IFIs will be available for financing of the project. 11.4 Project readiness and Size The Detailed Design is completed. REA will update the Detailed Design in order to ensure compliance with the international standards and norms. No Feasibility study is required for rehabilitation projects. 7/13
REA will be responsible for the preparation of the Tender Dossiers for the Works and Service Contracts and tendering procedures. The implementation of the project can start according to the construction chart (Annex 2). The project complies with the 2 MEUR minimum PHARE allocation requirements. 11.5 Sustainability Road Executive Agency as an institution will be responsible for the future maintenance and operational costs of the rehabilitated road. 11.6 Compliance with the state aids provisions The project complies with the state aids provisions. 11.7 Contribution to National Development Plan The proposed project will contribute to the achievement of the objectives declared in the National Development Plan. 12. Conditionality and sequencing The Bulgarian authorities undertake the obligation to cover any additional cost, above the envisaged MEUR 12, necessary for the completion of the whole project during its implementation timeframe. If the total cost of the project is greater than the amount envisaged in the project fiche, the extra support required will be provided by additional national co-financing. The additional national co-financing will be provided by: either allocating extra national funds to conclude a contract with the contractor proposed further to the completion of the procurement process following the Practical Guide to Phare, Ispa and Sapard Contract Procedures, or increasing of the cost of the on-going Phare financed contract via an addendum. Every infrastructure project will be publicised according to a publicity action plan to be prepared by the Ministry of Regional Development and Public Works and endorsed by the Commission before tendering the works. The rehabilitated road section will comply to the EU standards and norms REA will bear the maintenance costs for the rehabilitated road section. ANNEXES TO PROJECT FICHE 1. Logical framework matrix in standard format 2. Detailed implementation chart 3. Contracting and disbursement 4. Reference to feasibility /pre-feasibility studies 8/13
Annex 1 Logical framework matrix in standard format Rehabilitation and Partial Reconstruction of Road II-19 Razlog Bansko Gotse Delchev Sadovo Overall Objective To reduce isolation of border regions and encourage investments and cross-border trade. Through this improved communication link, development of both regional and national economic co-operation. Improvement of the infrastructure in the CBC regions of Bulgaria, as a part of the strategy for sustainable social and economic development. Objectively verifiable indicators Increase GDP regional share Increase Greek and other foreign investments in the region Contracting period expires: 30/11/2004 Total Budget: 12,4 MEUR Sources of Information Governmental and international statistic Disbursement period expires: 30/11/2006 Phare Budget: 9,3 MEUR Project Purpose Improvement of the existing II-19 road section between Razlog (Bansko) and Gotse Delchev Facilitate the increased traffic flow between Bulgaria and Greece through the new BCCP Ilinden. Development of the natural potential for tourism of this attractive area and thus provide the conditions for economic and social exchange between the CBC regions. Time and operating cost savings, as well as improved traffic safety and comfort. Promotion of local and national economic development. Objectively verifiable indicators Increased traffic flow crossing the border Reduced cross border journey duration Correspondence with EU requirements and regulations Sources of Information Beneficiaries. Community liaison groups on both sides of the border. Assumptions Economic growth in other sectors Reduction of the level of unemployment in the region Bulgarian Government continues its current commitment to reform and to accession to the EU
Results Strengthening the co-operation between the two border regions at local level. Objectively verifiable indicators Sources of Information Assumptions The main municipalities from the Bulgarian side concerned with the need for upgrading of the existing road are: Razlog, Bansko and Gotse Delchev. The travel distance between the villages in the region and Greece (Drama for example) will be considerably shortened as an alternative to the existing crossing point Kulata/Promachonas. Part of the traffic from Central Bulgaria to Greece will also take advantage of the improved road link. Preparation of Bulgarian border regions for the implementation of the structural policies applied by the EU Member States through the development of strategies and programmes for sustainable social and economic development. Interim Payment certificates Taking over certificate under FIDIC Taking over according Bulgarian Territorial Structural Act MRDPW REA Most of project activities does not exceed cost estimates and no major contingency during construction Provision of employment during the construction period. 10
Activities Means Sources of Information Detailed Design updating 11.5 MEUR reports issued by contracted and MRDPW, REA, REA will undertake updating of the existing Detailed disbursed Resident Design before starting of works tendering Adequately staffed Engineers, procedure. contractor s team Contractors No additional funding required. MRDPW bank statements Construction Supervision Services Assumptions Continuity of staff and policy in MRDPW and REA enabling implementation of the project without delays REA will undertake the preparation of the Tender Dossier for the Service Contract and tendering procedure. No additional funding is required. This contract shall be awarded according to the Practical Guide to Phare, Ispa and Sapard contract procedures through restricted tender procedure. Estimated budget: 0.9 M Euro. Construction Works REA will undertake the preparation of the Tender Dossier for the Works Contract and tendering procedure. No additional funding is required. The contract shall be awarded under FIDIC 1999 conditions for construction through an open tender. Estimated budget: 11,5 M Euro. 11
Annex 2 Detailed implementation chart Rehabilitation and Partial Reconstruction of Road II-19 Razlog Bansko Gotse Delchev Sadovo Components 2003 2004 2005 2006 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 1. Construction Supervision Services T T T T T T T C I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 2. Construction Works T T T T T T T C I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I D = Design/Tender preparation C = Contracting I = Implementation/works T = Tender procedure 12
Annex 3 Contracting and disbursement schedule by quarter Rehabilitation and Partial Reconstruction of Road II-19 Razlog Bansko Gotse Delchev Sadovo Components Cumulative contracting schedule by quarter in MEUR (planned) 2003 2004 2005 2006 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Phare Allocation 1. Construction Supervision Services 0,90 0,90 0,90 0,90 0,90 0,90 0,90 0,90 0,90 0,90 0,90 0,90 0,90 2. Construction Works 8.40 8.40 8.40 8.40 8.40 8.40 8.40 8.40 8.40 8.40 8.40 8.40 Total contracting: 0,90 9.30 9.30 9.30 9.30 9.30 9.30 9.30 9.30 9.30 9.30 9.30 9.30 Components Cumulative disbursement schedule by quarter in MEUR (planned) 2003 2004 2005 2006 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Phare Allocation 1.Construction Supervision Services 0,10 0.20 0.30 0.42 0.55 0.68 0.76 0.80 0.82 0.86 0.90 0,90 2. Construction Works 0,70 1.50 2.65 3.80 5.00 6.10 6.85 7.30 7.65 8.40 8.40 Total disbursement: 0,10 0.90 1.80 3.07 4.35 5.68 6.86 7.65 8.12 8.51 9.30 9.30 Annex 4 - Reference to feasibility /pre-feasibility studies Feasibility Study is required only when a new road is constructed. Therefore for this Project, which is a rehabilitation of an existing road, no Feasibility Study has been prepared. 13